What Is an Ex-Dividend Date?

By Keith Noonan – Updated Oct 10, 2025 at 3:26 AM

Key Points

Understanding ex-dividend dates ensures eligibility for stock dividend payouts.
Stock ownership before an ex-dividend date locks in dividend receipt on payable date.
Stock prices may rise before and fall after the ex-dividend date due to buying/selling shifts.

Owning dividend stocks can be a great way for investors to easily generate passive income over the long-term, but dividend schedules take on extra importance when it comes to short-term holdings and trades. If you're interested in buying a stock to receive its next dividend or want to make sure you're eligible for a payout before selling shares, it's crucial to know the stock's ex-dividend date.

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The word Dividends inside a torn-open dollar bill. — Image source: Getty Images

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Dividend Payments

The distribution of a company's profits to its shareholders. Dividends are usually paid in cash but sometimes in company stock, as well.

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Fiscal Quarter

In the financial world, a quarter refers to a three-month period used for reporting and recording financial performance, typically representing one-fourth of a company's fiscal year.

Investors who owned Coca-Cola stock immediately preceding the ex-dividend date received a payment of $0.46 for each share they held, and the payout was distributed on April 3. On the other hand, an investor who purchased stock in the company on or after March 16 would not have been considered a shareholder of record in time to receive the dividend for the quarter. But if the investor held on to that stock until the company's next ex-dividend date, they would be a shareholder of record eligible to receive the next quarterly payout and then receive a distribution on the payable date.

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About the Author

Keith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.